China Sunsine Chemicals Holdings

[Curiousparty]

Sunsine might open much lower this morning....

[Young Investor]

Portuser
From accelerator sales data in annual reports and 3Q 13 results announcement:

…….………..9 m 2013…9 m 2012.....2012…........2011..….......2010….…......2009
Volume (tonnes)
Domestic……n.a…..……….n.a…….....38,914….....28,087….......25,775........24,280
Export.……..n.a………….…n.a…....….25,338….....22,061….......20,568…......15,916
Total……...53,715…....48,360…...…64,252…....50,148….....…46,343…......39,196
ASP (RMB/tonne)
Domestic…….n.a…………..n.a…....…..17,500…....20,400…....….18,700…......15,800
Export…………n.a………..….n.a…....….20,300…....22,100…….....20,000…......17,600
Overall…….18,600.......18,700....…18,600….....20,700……....19,200…......16,500

The vol uptrend continued throughout. The price uptrend was interrupted in 2012. In that year, domestic price dropped by 14% when sales vol increased substantially, by 39%. 8% export price drop was smaller and vol increase was 15%.

In the first 9 months of 2013, price held steady when vol grew by 11%.
I believe that there may be scope for Sunsine to raise prices.

[potatolover]

It might drop below 20 cents again given the brewing crisis in EM markets ....isn't it painful for those who bought at the recent high of 30 cents ?

[potatolover]

It was interesting to note the few thousands of lots being transacted just below 30 cents ... Heavy paper losses for those big players after the recent drop ...

[potatolover]

looks like the sunsine fever is dying down...dropping back to where it is coming from...

[Young Investor]

It looks like that the company is capital intensive. The company will need to keep on investing in new line to expand their business. Will capital be a problem to the company?

[CityFarmer]

It looks like that the company is capital intensive. The company will need to keep on investing in new line to expand their business. Will capital be a problem to the company?

I wouldn't tag the company business as capital intensive. The asset turnover is around 1.2-1.3, which means that every $ of asset, generates $1.2-1.3 of revenue.

It is definitely not a capex-light business too, which easily can fetch more than $3 revenue per dollar of asset.

In other words, we shall take note on capex, thus FCF is a good indicator, instead of net profit alone.

(not vested)

[Sfsh12]

Hi CityFarmer,

What is the definition of asset turnover and how is it calculated?

Thanks!

It looks like that the company is capital intensive. The company will need to keep on investing in new line to expand their business. Will capital be a problem to the company?

I wouldn't tag the company business as capital intensive. The asset turnover is around 1.2-1.3, which means that every $ of asset, generates $1.2-1.3 of revenue.

It is definitely not a capex-light business too, which easily can fetch more than $3 revenue per dollar of asset.

In other words, we shall take note on capex, thus FCF is a good indicator, instead of net profit alone.

(not vested)

[CityFarmer]

Hi CityFarmer,

What is the definition of asset turnover and how is it calculated?

Thanks!

It looks like that the company is capital intensive. The company will need to keep on investing in new line to expand their business. Will capital be a problem to the company?

I wouldn't tag the company business as capital intensive. The asset turnover is around 1.2-1.3, which means that every $ of asset, generates $1.2-1.3 of revenue.

It is definitely not a capex-light business too, which easily can fetch more than $3 revenue per dollar of asset.

In other words, we shall take note on capex, thus FCF is a good indicator, instead of net profit alone.

(not vested)

A google will give you a detail answer from investopedia.com.

http://www.investopedia.com/terms/a/assetturnover.asp

[Curiousparty]

looks like the central govt is cracking down real hard on polluters....

Will sunsine be unscathed from this crackdown?

****
[BEIJING]China's environmental watchdog vetoed as many as 32 projects with a total investment of 118.4 billion yuan (US$19.5 billion) last year as it stepped up efforts to get tough on industrial polluters, a senior official said on Tuesday.

Zhai Qing, the vice-environment minister, told reporters his ministry was working to improve its environmental assessment capabilities and strengthen its powers to monitor and punish polluters.

"I think our ability to enforce and monitor is extremely important... and since last year, we have been constantly trying to strengthen our abilities," he added.

Beijing is under intense pressure to clean up its heavily polluted air, water and soil in the face of mounting public anger, but enforcement has been identified as one its biggest challenges, with the Ministry of Environmental Protection (MEP) struggling to find the clout to take on powerful industrial interests and growth-obsessed local authorities.

Officials have acknowledged that the ministry's punitive powers are limited. Fines are far lower than the cost of compliance and many big companies are willing to pay up and continue breaking the law.

The ministry is now hoping to extend its authority as China's new leadership promises to abandon the crude pursuit of economic growth. A new environmental law is likely to raise the fines imposed on polluters, and sources say the ministry's powers could be expanded further in a government shake-up expected to take place in March.

Mr Zhai said the ministry had made it a rule not to trust local statistics. Officials are also making use of unmanned aircraft and satellite technology to collect its own pollution data, and its inspection teams were now working more closely with the police to try to force companies to comply, he added.

Inspectors were also showing up unannounced at factories to avoid being misled by company officials.

The ministry imposed "tough punishments" on the regions of Guizhou, Henan and Inner Mongolia last year, and also suspended environmental approvals for projects in six cities as a result of violations, Mr Zhai said. - Reuters